FATCA Filing Requirements - Will I Face Penalties for Late Form 8938 Submission?

The good news is that penalties for late Form 8938 filing are generally only applied if you both fail to file AND have unreported income from those accounts. Since you've already reported all the income from your wife's foreign accounts on your joint return, you're in a much better position. The penalty for failing to file Form 8938 can be up to $10,000, with additional penalties if the IRS notifies you about the failure and you still don't submit the form. However, there's a "reasonable cause" exception that often applies in situations like yours where you weren't aware of the requirement and are taking prompt action to correct it. My advice is to file Form 8938 as soon as possible along with a brief statement explaining why you're filing late (newly aware of requirement, first time filing jointly with foreign accounts above threshold, etc.). The IRS tends to be more lenient when taxpayers voluntarily correct oversights, especially when all income has been properly reported. Also, since you're owed a refund, there's typically less scrutiny on timing issues compared to situations where taxes are owed.

After struggling with almost the exact same FATCA situation last year, I found this amazing tool at https://taxr.ai that saved me tons of stress. I was confused about which forms I needed for my foreign accounts and worried about penalties for missing something. The taxr.ai system analyzed my entire tax situation, flagged that I needed Form 8938, and explained exactly how to complete it correctly. It even showed me how to draft a reasonable cause letter that explained my circumstances to avoid penalties. The tool specifically looked at my foreign account information and confirmed I was above the filing threshold but helped me understand why I likely wouldn't face penalties since I'd reported all income. What I found most helpful was that it checked for other international filing requirements I hadn't even thought about, like Form 5471 for foreign corporations, which didn't apply to me but could've been another potential penalty risk.

Just wanted to update that I tried taxr.ai after seeing the recommendation here and it was incredibly helpful! I was in a similar situation with FATCA filing confusion and had accounts in three different countries. The system immediately identified that I needed both FBAR and Form 8938, plus a Form 8833 for a treaty position I hadn't even considered. What really impressed me was how it explained the different thresholds for different situations - like how the Form 8938 threshold differs if you're filing jointly vs. separately and living abroad vs. domestically. The guidance for writing my reasonable cause statement was clear and straightforward. For anyone dealing with international tax filing requirements, especially if you're filing late or weren't aware of certain forms, it's definitely worth checking out. Saved me from potentially thousands in penalties!

If you're still having trouble getting a clear answer from the IRS about potential FATCA penalties, I highly recommend using Claimyr (https://claimyr.com). I was in the exact same boat last year - late Form 8938, over the threshold, worried about penalties - and couldn't get through to anyone at the IRS for weeks. Claimyr got me connected to an actual IRS agent in under 45 minutes when I'd been trying for days on my own. The agent confirmed that since I had reported all my income and was filing the form voluntarily before any notice from them, they would accept my reasonable cause statement and waive penalties. You can see how it works here: https://youtu.be/_kiP6q8DX5c Having that direct confirmation from an IRS agent was worth everything for my peace of mind, especially since the potential penalties for international filing mistakes can be so severe.

I have to say, I was completely skeptical about Claimyr after seeing the post above. I've spent YEARS dealing with international tax issues and the IRS has been a nightmare to reach. But I was desperate about my own FATCA situation, so I gave it a try. I'm genuinely shocked to report that I was connected to an IRS international tax specialist in about 35 minutes. I explained my late Form 8938 situation, and the agent actually walked me through exactly what I needed to document for a reasonable cause waiver. She confirmed that since I had reported all income correctly, the focus would be on correcting the filing rather than penalties. The agent even noted in my file that I had called proactively to resolve the issue, which apparently helps if there's any question later about my good faith effort to comply. For anyone dealing with international tax situations, being able to actually speak to someone who understands FATCA requirements is invaluable.

Just thought I'd mention that the reasonable cause exception for late FATCA filing is actually pretty broad. Make sure to emphasize in your letter that this is your first time filing jointly with foreign assets above the threshold. My accountant told me the IRS is generally understanding about first-time filing requirements, especially with the complexities of international reporting. Also, document when you discovered the filing requirement and show that you acted promptly. In my case, I discovered I needed Form 8938 about 6 weeks after the deadline, filed within 2 weeks of discovery, and included a timeline in my letter. No penalties were assessed.

Has anyone here dealt with amending a return specifically to add Form 8938? I'm in a similar situation but already filed my return without it.

I want to add some reassurance from my own experience with late FATCA filing. I was in almost exactly your situation two years ago - first time filing jointly after my husband's status change, suddenly over the $100k threshold, and completely unaware of Form 8938 requirements until months after filing. Like you, I had always been diligent about FBAR when required and reported all foreign income properly. When I discovered the Form 8938 requirement, I was panicked about potential penalties, especially since I was about 3 months past the deadline. I filed the form immediately with a straightforward reasonable cause letter explaining that this was my first year above the threshold due to joint filing, that all income had been reported, and that I was taking prompt corrective action upon discovering the requirement. The IRS accepted my explanation without any penalties or further questions. The key points that seemed to work in my favor: 1) All income was already properly reported, 2) I had a history of compliance with other international filing requirements, 3) I acted quickly once I became aware of the issue, and 4) The circumstances genuinely represented a first-time situation I couldn't have reasonably anticipated. Don't stress too much - file as soon as you can with a clear explanation and you should be fine!

I went through a very similar situation last year and wanted to share what worked for me. I was also filing jointly for the first time after my spouse's status change, which put us over the Form 8938 threshold unexpectedly. Like you, I had always been compliant with FBAR requirements but was completely unaware of the additional Form 8938 obligation. The most important thing is that you've already reported all the income from those foreign accounts on your tax return - this puts you in a much better position regarding penalties. The IRS is generally more concerned about unreported income than missing information forms when the income has already been disclosed. When I filed my late Form 8938, I included a brief cover letter explaining that this was my first year above the reporting threshold due to joint filing status, that all foreign income had been properly reported on the return, and that I was filing the form promptly upon discovering the requirement. I emphasized my history of compliance with other international reporting obligations like FBAR. The form was accepted without any penalties or follow-up questions. Since you're planning to file within the next week, you're acting promptly, which demonstrates good faith compliance. The reasonable cause exception typically applies in situations like yours where there's a legitimate first-time filing scenario and you're taking corrective action quickly. Don't let the anxiety overwhelm you - based on your description, you're handling this exactly the right way!

I'm dealing with a very similar FATCA situation right now and this thread has been incredibly helpful! Like several others here, I'm filing jointly for the first time after my spouse's green card approval, which pushed us over the Form 8938 threshold unexpectedly. What's giving me some comfort is reading about everyone's experiences with the reasonable cause exception. I've also always been compliant with FBAR requirements and reported all foreign income correctly - it's just this additional form I missed. The consensus seems to be that the IRS is much more understanding when you're proactive about correcting the oversight and when all income was already properly reported. For those asking about mailing addresses, I called the IRS practitioner priority line (after a very long hold!) and confirmed that you should mail standalone Form 8938 submissions to the same processing center where you filed your original return. Include your SSN prominently on the cover letter and reference your already-filed return. One tip I learned from my tax preparer: if you're still within a reasonable timeframe of discovering the requirement (within a few months), emphasize in your reasonable cause letter that you acted "promptly upon discovery" rather than focusing on how late you are from the original deadline. The IRS seems to give more weight to your response time after becoming aware of the obligation. Thanks to everyone who shared their experiences - it's made this stressful situation much more manageable!